A client has a domain with Xtra at the moment but the hosting is done elsewhere.... recently the domain name was due to expire, I called Xtra to find out what the story was with renewing it and was told that it was part of the monthly fee and it would automatically be renewed...which it did.

Now we want to move that domain to another host - because Xtra charge monthly fee for the domain, how does the billing get worked out when I move the domain to its new host ? Is my client going to get stung with a huge domain fee from Xtra or just a partial one ?

When a .nz domain name is transferred from one registrar to another the expiry date lodged at the central registry is carried over to the new provider. In other words, the full renewal term that you have purchased will be honoured even if you transfer the domain name before the end of that term.

In this case if Xtra are renewing the domain name one month at a time then you will need to make arrangements with the new registrar to renew it ASAP (perhaps continuing monthly billing or a longer term renewal depending on what they are willing to provide) to ensure that it doesn't expire unexpectedly.

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